Plan ahead, and don't stockpile: What can Kiwis expect as supply issues continue?

Saturday, 15 January 2022

Supermarkets, including Countdown, have been plagued with supply chain issues since the pandemic began.

Retail leaders are urging New Zealanders toplan ahead when it comes to shopping in 2022, as getting essential items might be more difficult than usual.

As supply chain issues continue to wreak havoc internationally, some are predicting it could take another two years for things to get back to normal.

The Government is currently working on developing a national supply chain strategy to prepare for an increasingly uncertain world, but a draft strategy won't be completed until the end of the year.

So what can Kiwis expect over the coming months, and how can we prepare for ongoing supply issues?

* Covid-19: Supermarkets eye Australia's Omicron troubles

First published January 2022. Omicron is having a huge impact on supply chains in New South Wales, from producers and truck drivers to supermarket staff.

* Supermarket shortages: 'Lumpy' supply chain likely in 2022

“We've all seen supply chain challenges through 2021 with shortages and delays from new cars to clothing, and from bicycles to bread makers,” said John Berry, the chief executive at ethical fund manager and KiwiSaver provider Pathfinder Asset Management.

“The recent Omicron Covid variant will likely make things worse before they get better.”

On Saturday there were 29 new cases of Covid-19 in the community, and 25 at the border.

An Auckland MIQ worker has also tested positive for the virus and genome sequencing was under way to determine the variant, the Ministry of Health said in its 1pm update.

Omicron is highly transmissible, meaning more staff at a workplace were likely to be sick at the same time, which could lead to production and transport challenges, Berry said.

In Australia, many supermarkets have empty shelves due to not having enough staff to drive goods to the stores, or pack the shelves, due to thousands of workers being home sick or in self-isolation.

Supermarkets here have faced a noticeable struggle with supply in recent months with empty shelves where brown sugar, lemons, and pet food once sat, and toilet paper limited to two packets per customer in some places.

An Omicron outbreak, which has been described as “inevitable” by experts and politicians, would make things much worse.

Countdown General Manager Kiri Hannifin told Stuff this week the impacts of Omicron for the company’s colleagues in Australia were worrying.

The supermarket has developed plans to help manage absenteeism, which were tested during the first few weeks of the August 2021 lockdown when thousands of team members were off work, Hannifin said.

As an essential service, supermarkets do not close during outbreaks, nor do they require customers to have a vaccine pass, which means stockpiling essentials is not necessary and only makes the problem worse.

Retail New Zealand Chief Executive Greg Harford, said supply chains issues were continuing to impact the availability of stock across New Zealand.

“Supply chains are likely to be even more challenged when Omicron arrives in New Zealand if distribution workers are taken ill and need to isolate,” he said.

“It's a good idea to plan ahead when making purchases, and think about alternatives if the particular brand or product you're looking for isn't available.

“And please be patient and shop nice - retailers will be doing their best to help.”